Faculty of Commerce, Banaras Hindu University, Varanasi.
Foreign Direct Investment in Retail sector has become apoint of contention between the Government, Retail association and companies in India along with multinational companies willing to come to India. The paper tracks growth of the organized retail in the country, the global position of the country in this sector and the current scenario. Positioning and retail formats of different Multinational and Indian companies have been examined along with the understanding of the Indian consumer in general. The probable challenges being faced in the sector and how the investment in the sector will only improve the scenario have been examined. Based on the paper, the conclusion derived is that improving the efficiency in the system is need of the hour and in short span of time, FDI will surely become a reality and various multinational companies will establish their presence in the country. This will be a win-win situation for the consumers in general. There might be impact on the local stores but they will learn to adapt as had happened with the evolution of Wal-Mart in USA.
